Sustainability and Inclusion: To leave no one behindEGYPT : THE WAY FORWARD

In 2011, Egypt started its politicaltransformation triggered by its people
calling for social justice parallel witheconomic development.

REAL GDP GROWTH RATEReal GDP Growth Ratefrom 2010-2016
2010/2011: 1.8%
2011/2012: 2.2%
2012/2013: 2.1%
2013/2014: 2.2%
2015/2016: 4.3%

Source: CBE

4.40%

1.80%
2010/11

2.20%

2.1%

2011/122012/13

4.30%

2.2%

2013/142014/15

2015/16

TOP FIVE BEST PERFORMERS FOR THE FY2015-2016
181614121086420

Source: CBE

17.114.111.9

10.5
5.4

NET FDI
10

USD billion

98

6.8

6.4

76544

3.8
2.1

3210

4.1

2011/122.4
2012/13

2.3
2013/14

Net FDI

Source: CBE

3.8

4.5

Greenfield & Expansion

2014/15

2015/16

FDI

per region/sector petroleum

FDI Per Sector
FY 2014/2015

FDI Per Sector
FY 2015/2016

Petroluem
59%

Petroluem
53%

Real Estate
6%

Others31%

CIT
0%
Tourism0%Services2%

Others23%
Finance2%
Construction6%

Source: CBE

Industry2%
Agriculture0%Real Estate
4%
CIT
1%
Tourism0%Services
2%

Industry3%
AgricultureFinance
0%4%Constructio
n2%

FDI

per region/sector non petroleum

FDI Per Sector FY 2014/2015(Non-petroleum Sectors)

FDI Per Sector FY 2015/2016(Non-petroleum Sectors)
Others67%

Real Estate
15%

Others56%
Real Estate
8%

CIT
0%

Tourism0%Services
4%

Industry
7%

CIT
1%
Industry
6%
Finance
5%Source: CBEConstructio
n14%

Agriculture0%

Agriculture0%Tourism1%Services
5%

FinanceConstructio
8%n3%UNEMPLOYMENT RATE
Unemployment Rate

Unemploymentrate from 20102015

141292011122012

12.7

2013

13.2

2014

13201512.8

Source: CBE

Percentage Rate

1020101212.713.2

1312.8

2013

2014

2015

98
6
4
2
0

2010

2011

2012

YearTRADE
Major exports:
Crude oil andpetroleum products
TextilesMetal products
Chemical products
Metal products
Agricultural products

Source: CBE

Major imports:
Machinery andequipment's
Auto Parts
Foodstuffs
Chemicals
Plastics
Metal products
Fuels

80
70
60

54.1

59.2

60.2

57.7

61.3

57.4

50
40
30

26.9

25.1

26.9

26

20

22.2

18.7

100

2010/112011/122012/132013/14

Exports

Imports

2014/15

2015/16

EGYPT CREDIT RATING• S&P revised Egypt’s sovereign credit outlook
from “negative” to “stable” on Nov.11.2016 dueto the projected support by the International
Monetary Fund (IMF), which already has takenplace.
• Moody’s forecast Egypt’s economy to grow by
4.0% and 4.5% in 2017-18

Ratingoutlook

Date

B-

StableNov. 11, 2016

B-

Negative

May 13, 2016B-

stableNov. 13, 2015

RatingOutlook

Date

StableJan. 15, 2017

B3

StableAugust 19, 2016

B3

StableApr. 07, 2015

HOW BIG ECONOMIES WILL BE…
2050

2030

2016

JAPAN AND EGYPT…
Japan-Egypt relations represent the story of TWOcountries whose people share the same eastern cultures,
maintain their customs and traditions, and theconvergence of families.

ECONOMIC REFORM PROGRAM : 2030 VISION
Egypt’s vision is to possess a competitive,
balanced
anddiversified
economy,dependent on innovation and knowledge,
based on justice, social integrity andparticipation, characterized by a balanced
and diversified ecological collaboration
system, investing the ingenuity of place andhumans
toachieve
sustainable
development and to improve Egyptians' life
quality.

EGYPT'S MEDIUM-TERM STRATEGY AND OUTLOOK 2014/15 -2018/19
The first step to realize the government’s 2030 vision of a productive andefficient economy that generates high, sustainable and inclusive growth isthe five year macro economic framework and strategy FY2014/15 andFY2018/19.

EGYPT'S MACROECONOMIC TARGETS FY18/19• Sustainable real GDP growth targeting 6% by the end of the period.
• A faster pace of job creation.
• Greater efficiency in government spending in parallel with a planned reduction of thefiscal deficit to 8 - 8.5% of GDP, and the government debt to within a range of 80 85% of GDP.
• Headline Inflation within a 6 - 8% range• Higher rates of domestic investment• Improved export performance• The development of the country’s human resources supported by increased
spending on health, education and Research and Development (up to at least 10%of GDP) as mandated by the Constitution• Enhanced productivity on the national level and continued investment in andupgrading of infrastructure.

SUSTAINABILITY FOR FUTURE GENERATIONSTO LEAVE NO ONE BEHIND

2030 social
dimension vision

EGYPT'S MEDIUM-TERM STRATEGY AND OUTLOOK• Encompasses concrete policies, programs and projects to realize a productive
and efficient economy that generates high, sustainable and inclusive growth.
• The government continues to work steadily on achieving sound public financesand macroeconomic stability.
• Prudent fiscal and monetary policies constitute the core of the medium-term
reform program.
• This policy framework will preserve confidence and encourage economic actors
to expand investment activities and consequently consumption, thereby
propelling growth.
• The macroeconomic policies are being complemented by measures to modernize
the business environment, a large hike in public spending on human capitalformation, a focus on revamping and expanding physical infrastructure

THE MAIN REFORM PILLARSThe government isfocusing on fiscal
consolidation toreduce the debt
burden and manage
rollover risk over the
medium-term

Tax policy andrevenue reforms

Public debt
management
and financing
strategy

Monetary policy will seek to control
and gradually reduce inflation
towards the CBE’s target of 6-8% in
the medium term to improve real
incomes and enhance external
competitiveness.

To widen the tax base and creating afairer and more equitable system

Public spending
priorities andreform
measures

Monetary policy

To reallocate
government
expenditures inenergy subsidies,wage and interest
payments and focus
more on growth andsocial justice areas.

THE INVESTMENT CLIMATE REFORMS
Disputes
Settlements

Updating
Investment Map

Procedural Reform

Investment
Programs& Projects

Administrative
Reforms

Updating Polices

Doing Business
Reforms

Strategic Transformation

InstitutionalReforms

Legislative Reforms

LAWS AND REGULATIONS REFORM• For creating an attractive, predictable, fair and internationally competitive
business environment governed by the rule of law.
• And, enhancing the domestic investment environment as part of its broader
macroeconomic strategy prioritizing private investment-led growth.

Competition Law (Passed)
Microfinance Law
Mining Law(Passed)
Third Party Contract Appeal Law (Passed)
Commercial Register Law
Insolvency and debit restructure Law
Customs Law
New Investment Law

WHAT HAS BEEN ACHIEVED SO FAR…
Floating the Egyptian pound
The VAT law No. 67/2016 was decreed
Adjusting electricity prices
Partial lifting of subsidies on petroleum products

FEATURES OF THE NEW INVESTMENT LAW
The Investment
race for developing
the Egyptianbusiness
environment
between the newinvestment law andthe Supreme
Investment Council

The Supreme
Investment Council

17 Reform decisions in
the first meetingAnd
more …

Introducing theNew Investment law

Investment
Window for less time
more efficiency in Doing
Business Environment

Incentives for
StrategicBusinessesAnd
more …

INVESTOR SUPPORT AND GUARANTEE FORSUSTAINABLE INVESTMENTS
Investment law no. 8
modifications

Out boundmeasures111
Investment
Agreements

Protection

52
DoubleAgreements

Avoidance

Tax(MIGA) and OECD Investment
Committee membership

In boundmeasures

The
Investment
DisputesResolutions
Committee
The"ContractsCommittee"
DisputesCenterSettlement

GAFIInvestor
DepartmentCare

JAPANESE INVESTORS IN EGYPT…
ELEVEN CASES CURRENTLY IN THE RESOLUTION PHASE
ENDORSED BY GAFI, RANGING FROM OPERATION
LICENSES , TO BRINGING IN EXPATS, AND ISSUES WITH
THE CUSTOMS AUTHORITY, ETC…

WHY INVEST IN EGYPT• Central location with strategic trade agreements• Access to a large consumer base in Egypt and beyond• IRR-Investment return rate
• Diversified growing economy• Qualified and competitive labor force• Improving infrastructure• Reformist investment climate• Resilient economy to external and internal shocks• Dynamic business environment• Abundance in Natural Resources• Unparalleled returns and solid financial sector

VOTE OF CONFIDENCE

SECTORS
AgribusinessPetrochemicals

Engineering andElectronics

Pharmaceuticals

Tourism

Health care

Logistics

Real estate and construction

RenewableenergyMiningRetailAutomotive

ICTTextile

AMBITIOUS LANDMARK PROJECTSIN EGYPT

THE DEVELOPMENT OF THE SUEZ CANAL REGION
1) The Economic Zone in the Suez Canal•The Suez Canal is considered the main focus ofeconomic development in Egypt.

•The region has a strategic location on the main roadsof international trade and the proximity to Al-Sokhnaport.

•Al-Sokhna area is becoming Egypt's gateway to andfrom the Middle East and Asia, which provides
competitiveness, reduces production cost and eases
access to markets in the Middle East and the world.

THE DEVELOPMENT OF THE SUEZ CANAL REGION2)The Economic Zone in East Port Said•

THE PROJECT HAS A UNIQUE INVESTMENT OPPORTUNITY TOESTABLISH AN INDUSTRIAL AREA IN EASTERN PORT SAIDSQUARE.

•THE AREA IS ONE OF THE BEST CURRENT OPPORTUNITIES TOENGAGE IN AFRICA AND THE MIDDLE EAST, OR TO EXPAND THE
BUSINESS IN THOSE MARKETS. THE PROJECT ITSELF IS A
POTENTIAL MARKET OF HIS OWN.

•BUILT FOR RENT.

THE DEVELOPMENT OF THE SUEZ CANAL REGION
3) West Qantara area development• The project is the administrative center of the area of ​theSuez Canal, as well as the creation of logistical activities
Of food centers and dry ports.
• The project is located on the west side of the northernborder of Al-Ismailia governorates.
• The purpose of the project is the development of urban
areas in the new city of Qantara and Ismailia toaccommodate more than 350,000 people.

THE DEVELOPMENT OF THE SUEZ CANAL REGION4)The Technological Zone

• The project aims to create a new urban society
depends on economic activity resulting from themerger of investment, education and scientificresearch, based on high-tech industries.
• Total project area 70 square kilometers.

THE NEW ADMINISTRATIVE CAPITAL• A large scale project located 45 km
eastofCairo.

Fourconstruction

companies have been mandated toexecute the infrastructure of the 1stphase with a cost of EGP 4 billion.
• Project utilities has partially finished.
• Doesn't need special approvals.
• Land will be allocated through sale.

DEVELOPMENT OF 1.5 MILLION FEDDAN• New Valley reclamation project and the development of 1.5 million
Feddan.
• Establishing Reef Company for this purpose with a capital estimateof 1 billion dollars.
The Company aims to:• Develop new integrated societies based on agriculture and agroprocessing• Create value added projects;• Maximizing the economic return of the water used.

THE GOLDEN TRIANGLE PROJECT
Three main mining anchors generating multiple industrial
zones
The main sectors under investigation are:Mining

Logistics

Industry

Urban

Transport

Agriculture

EnergyTourism

Ports

Utilities

Approx. 840 thousand feddans

THE CITY OF EL ALAMEIN PROJECT•The project is on the Northwest coastand represents approximately 12.8% ofthe total area of Egypt.
•The project will attract investments inthe tourism, agriculture, industrial,commercial, and educational sectors.
•The government is currently working
on the project`s utilities.

Preliminary plan of new Alamein cityTHE FURNITURE CITY IN DAMIETTA•An industrial project for the establishment andthe development of Damietta governorate as
furniture city on 333 Feddan, the city to host acluster of Furniture manufacturing andcomplimentary industries, R&D center, furnitureacademy , renewable energy station & hotel.
•The project doesn't need special approvals.

THE LOGISTICS CENTER FOR GRAIN IN DAMIETTA•The project is on 4 Mn. Sq. meter in Damietta
governorate.
• Currently Damietta governorate is theresponsible authority but a new development
authority is under formation.

LEATHER CITY IN AL-ROBIEKY•The project purpose is tanning and manufacturing of leather.
•Total project size 1629 feddans.
•The infrastructure of the first phase of the project has been
finalized and finance of the second and third phase has been
secured.

THE INVESTMENT MAP
Tourism

Industry

Petrochemical

Mega Projects

Agriculture

Investment map
Mining

Housing

Stressedprojects

ServicesPPPABOUTGAFIProactive investment promotion agency with promotion, facilitation, businessmatchmaking, Egyptian expatriates, events, investor aftercare, and research
and market intelligence functions.
GAFI work is based on five main pillars: .
GAFI is the principal governmental authority concerned with regulating andfacilitating investment in Egypt.
• The promotion of Egypt’s potential sectors to attract foreign investment,reinvestments and expansions.
• The stimulation of domestic investment.
• The development of investment services.
• The management of free zones and development of investment zones
to accelerate the expansion of competitive strategic clusters.
• Institutional development support to entrepreneur-ship and stimulating
the development of innovation.

THE MISSION STATEMENT"To enable and sustain Egypt's economic growth throughinvestment promotion, facilitation, efficient business services
and advocacy of investor friendly policies”

THE ONE STOP SHOP FOR INVESTMENT
Services Offered Through the O.S.S:
Establishment Services
After Establishment Services:•Legal Services.
•Technical Services.
•Governmental Services.
•Publication in Investment Gazette.
•Tax Exemption Services.
•Establishment Services.

Main functions• Facilitate the procurement ofbusiness licenses.
• Offer technical advice andinformation to clients planning.
• Introduce a transparent andreasonable fee structure• Improve the quality and timelinessof government related processes.

THANK YOU FOR YOURATTENTION